Gas price to crash as Buhari commissions NPDC’s integrated gas plant today

by NewsNG Editor

Nigeria’s President Muhammadu on Tuesday will launch the Nigerian Petroleum Development Company’s (NPDC) Oredo Integrated Gas Handling Facility (IGHF) at Ologbo Edo State.

The gas facility makes NPDC, a subsidiary of the Nigerian National Petroleum Corporation (NNPC), the largest supplier of natural gas to the domestic market in Nigeria.

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NPDC’s Managing Director, Mansur Sambo, said the facility will be virtually commissioned by Buhari.

The facility will also reduce the importation of LPG as it will contribute to 40% of the domestic gas requirement and has estimated product steam of 330 tons of LPG, 345 tons of industrial-grade propane, and 2,600 barrels daily of condensate.

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The NPDC IGHF according to the NNPC would yield 82mmscfd of lean gas or methane, which is equivalent to 366.5MW of electricity per day.

If operated at full capacity, the facility could provide gas resources that could generate as much as 3.2 million megawatts of electricity in about 25 years.

NewsNG gathered that the 82mmscfd translates to $205,000 per day or approximately $75 million per year at $2.5 per mscf of gas while there would be additional 330 tonnes per day of LPG, translating to about 16-20 tonnes LPG trucks per day for the domestic gas market. This yields about N73.6 million per day or N26.8 billion per year.

The plant is also expected to crash the price of cooking gas over time with the NPDC becoming the largest supplier of natural gas to the domestic market.

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